FEDERAL-MOGUL CORPORATION (FDML, Financial) filed Annual Report for the period ended 2011-12-31.
Federal Mogul-a has a market cap of $1.74 billion; its shares were traded at around $16.72 with a P/E ratio of 9.1 and P/S ratio of 0.3.
Gross margin increased by $71 million to $299 million, or 13.0% of sales, for the year ended December 31, 2011 compared to $228 million, or 12.3% of sales, for the year ended December 31, 2010. The favorable impact of increased sales volumes contributed to a $66 million increase in gross margin. Other factors contributing to the improved margin were customer price increases of $24 million, decreased depreciation of $19 million, currency movements of $7 million and $4 million directly related to the Daros Group. These increases were partially offset by unfavorable productivity, net of labor and benefits inflation, of $28 million and increased materials and services sourcing costs of $21 million.
Selling, general and administrative expenses (SG&A) were $689 million, or 10.0% of net sales, for the year ended December 31, 2011 as compared to $684 million, or 11.0% of net sales, for the year ended December 31, 2010. This $5 million increase was due to increased costs, net of labor and benefits inflation, of $18 million and currency movements of $14 million, partially offset by lower pension and other postemployment benefits expense of $14 million, lower stock-based compensation expense of $4 million, materials and services sourcing savings of $4 million, reduced depreciation expense of $4 million and other reductions of $1 million.
Gross margin increased by $99 million to $228 million, or 12.3% of sales, for the year ended December 31, 2010 compared to $129 million, or 9.1% of sales, for the year ended December 31, 2009. The increase was due to improved sales volumes, which increased gross margin by $107 million, favorable productivity in excess of labor and benefits inflation of $26 million, materials and services sourcing improvements of $5 million and $2 million directly attributable to the Daros Group, partially offset by currency movements of $26 million, customer price decreases of $9 million, increased depreciation of $5 million and increased pension expense of $1 million.
Gross margin increased by $93 million to $111 million, or 10.1% of sales, for the year ended December 31, 2010 compared to $18 million, or 2.2% of sales, for the year ended December 31, 2009. The increase was due to improved sales volumes, which increased gross margin by $88 million, materials and services sourcing improvements of $15 million and favorable productivity, in excess of labor and benefits inflation, of $8 million, partially offset by currency movements of $10 million, customer price decreases of $4 million, increased depreciation of $3 million and increased pension expense of $1 million.
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Federal Mogul-a has a market cap of $1.74 billion; its shares were traded at around $16.72 with a P/E ratio of 9.1 and P/S ratio of 0.3.
Highlight of Business Operations:
Gross margin increased by $81 million to $1,088 million, or 15.7% of sales, for the year ended December 31, 2011 compared to $1,007 million, or 16.2% of sales, for the year ended December 31, 2010. This increase was due to decreased depreciation of $51 million, sales volume increases, which increased gross margin by $37 million, currency movements of $27 million, customer price increases of $25 million, $4 million directly related to acquisitions and decreased pension expense of $1 million, partially offset by unfavorable productivity, net of benefits and labor inflation, of $36 million, and increased materials and services sourcing costs of $28 million.Gross margin increased by $71 million to $299 million, or 13.0% of sales, for the year ended December 31, 2011 compared to $228 million, or 12.3% of sales, for the year ended December 31, 2010. The favorable impact of increased sales volumes contributed to a $66 million increase in gross margin. Other factors contributing to the improved margin were customer price increases of $24 million, decreased depreciation of $19 million, currency movements of $7 million and $4 million directly related to the Daros Group. These increases were partially offset by unfavorable productivity, net of labor and benefits inflation, of $28 million and increased materials and services sourcing costs of $21 million.
Selling, general and administrative expenses (SG&A) were $689 million, or 10.0% of net sales, for the year ended December 31, 2011 as compared to $684 million, or 11.0% of net sales, for the year ended December 31, 2010. This $5 million increase was due to increased costs, net of labor and benefits inflation, of $18 million and currency movements of $14 million, partially offset by lower pension and other postemployment benefits expense of $14 million, lower stock-based compensation expense of $4 million, materials and services sourcing savings of $4 million, reduced depreciation expense of $4 million and other reductions of $1 million.
Gross margin increased by $99 million to $228 million, or 12.3% of sales, for the year ended December 31, 2010 compared to $129 million, or 9.1% of sales, for the year ended December 31, 2009. The increase was due to improved sales volumes, which increased gross margin by $107 million, favorable productivity in excess of labor and benefits inflation of $26 million, materials and services sourcing improvements of $5 million and $2 million directly attributable to the Daros Group, partially offset by currency movements of $26 million, customer price decreases of $9 million, increased depreciation of $5 million and increased pension expense of $1 million.
Gross margin increased by $93 million to $111 million, or 10.1% of sales, for the year ended December 31, 2010 compared to $18 million, or 2.2% of sales, for the year ended December 31, 2009. The increase was due to improved sales volumes, which increased gross margin by $88 million, materials and services sourcing improvements of $15 million and favorable productivity, in excess of labor and benefits inflation, of $8 million, partially offset by currency movements of $10 million, customer price decreases of $4 million, increased depreciation of $3 million and increased pension expense of $1 million.
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